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Hanford Employer Must Pay $4.2 Million for Workers’ Compensation Fraud


Posted on Dec 30, 2013

A business owner who defrauded the California workers’ compensation system has been sentenced millions of dollars in restitution and six years in prison, according to authorities.

Richard Lopez Escamilla, Jr., 47, operated a farm labor contracting company under several names, including ROC Harvesting, EC Labor Inc., and ES Labor. This October, Escamilla pleaded guilty to several charges, including illegally misrepresenting workers’ compensation claim information and underreporting employee payroll as a way of reducing the cost of his insurance premiums.

On December 4, 2013, Kings County Superior Court sentenced Escamilla to one felony count of insurance fraud. Escamilla must now pay almost $4.2 million in restitution to the California State Compensation Insurance Fund, SeaBright Insurance, and the California Employment Development Division.

According to California Insurance Commissioner Dave Jones, “This is a win for California consumers, insurers and taxpayers. This case isn’t just about one crook who stole from two insurance companies. Business owners across the state end up paying the real price for workers’ compensation fraud through higher premiums and those costs are passed to consumers.”

Are you recovering from a severe workplace injury in Chico? Are you concerned about your chances of recovering sufficient temporary or permanent disability from your employers’ workers’ compensation insurance provider? Don’t enter into the claims process without knowledgeable guidance. Schedule a no-cost consultation with the Ledgerwood Law Group by calling our offices toll-free at 888-761-7383—or fill out the online form.

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